1.1                          A bill for an act 
  1.2             relating to agriculture; providing for shared savings 
  1.3             loans for demonstration projects of manure processing 
  1.4             and odor control technology; requiring purchase of 
  1.5             energy from manure waste methane recovery systems; 
  1.6             providing rebates; appropriating money; amending 
  1.7             Minnesota Statutes 1998, section 17.115, by adding a 
  1.8             subdivision; proposing coding for new law in Minnesota 
  1.9             Statutes, chapter 216B. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 17.115, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 5.  [MANURE PROCESS AND ODOR CONTROL 
  1.14  TECHNOLOGY.] Notwithstanding subdivision 2, paragraphs (b) and 
  1.15  (c), interest-free loans up to $200,000 may be made under this 
  1.16  section to any resident of Minnesota for demonstration projects 
  1.17  of new technology for processing manure and odor control.  Loans 
  1.18  under this subdivision may be used as a match for federal loans 
  1.19  or grants.  Money from repayment of loans must be deposited in 
  1.20  the revolving loan account for this program to be used for 
  1.21  future projects.  
  1.22     Sec. 2.  [216B.2425] [MANURE WASTE METHANE RECOVERY SYSTEM 
  1.23  MANDATE; REBATE.] 
  1.24     (a) The public utilities commission shall order the public 
  1.25  utility that serves the operator of a manure waste methane 
  1.26  recovery system to purchase any excess electric energy generated 
  1.27  by that system.  If the cost of the energy is greater than the 
  2.1   price of retail electric energy provided by the utility to 
  2.2   residential customers, the utility may apply to the commissioner 
  2.3   of public service for an agricultural energy rebate.  The rebate 
  2.4   must be equal to the cost of energy produced by the methane 
  2.5   recovery system minus the cost of retail residential energy 
  2.6   provided by the public utility.  Upon certification by the 
  2.7   commissioner of public service that the energy rebate 
  2.8   application is valid, the commissioner of finance shall issue 
  2.9   the rebate to the applicant.  
  2.10     (b) For the purposes of this section, the term "public 
  2.11  utility" means: 
  2.12     (1) a "public utility" as defined in section 216B.02, 
  2.13  subdivision 4; or 
  2.14     (2) a municipality or cooperative electric association, 
  2.15  organized under the provisions of chapter 308A, that produces or 
  2.16  provides electric service. 
  2.17     Sec. 3.  [APPROPRIATIONS.] 
  2.18     Subdivision 1.  [MANURE AND ODOR CONTROL 
  2.19  TECHNOLOGY.] $2,000,000 is appropriated from the general fund to 
  2.20  the commissioner of agriculture for fiscal year 2000 to be used 
  2.21  for loans under section 1.  
  2.22     Subd. 2.  [METHANE RECOVERY.] $2,000,000 is appropriated 
  2.23  from the general fund to the commissioner of finance for fiscal 
  2.24  year 2000 for the agricultural energy rebate program under 
  2.25  section 2.